This market will not go down. At least investors should not expect it to until it proves otherwise. What would prove otherwise? A solid to large down day to start, then a second solid to follow-through down day. Back to back down days have been elusive. If you recall, over two weeks ago we had a massive drop in the markets. It was Wednesday, May 17th. However, there was no follow-through the next day. Instead, markets floated up, up and away, reaching new all-time highs. The secondary down day is extremely important to confirming a change in direction.
As long as you do not get this reversal signal, buy every beaten down stock that is left to buy. Investors are searching for these names and will pile in on the first sign of a pop. My favorite picks are below.
Twilio Inc (NYSE:TWLO)
Fitbit Inc (NYSE:FIT)
Eagle Bulk Shipping Inc (NASDAQ:EGLE)
All three of these stocks reported great earnings and initially jumped, but then slowly pulled back to their lows. The next leg up should be on the horizon.
